Visual Merchandising is the design skills which used by the organizations to promote the image, product or services in the retail business. They develop eye catching product display and attract customers to buy their products or use their services. It is used to maximise the sales of the company and play critical role (Baek and et.al., 2015). This project report based on the case study of Burj Al Arab which is Dubai based luxury hotel and it is the tallesthotels in the world. This report include the current structure of retail sector, assess that how visual merchandising techniques are applied in Burj Al Arab and evaluate the role of external merchandising with some recommendations. In addition, how these techniques influence the customer behaviour as well as operational design on sales revenue.
1. Explore current structure of the sector through investigation of local retail environment and investigate that how retail sector respond to the change & trends
In the retail business environment, structure of the organization become more diverse because of expansion of brands in the different categories and in the local. There are various perspective which used to define the structure of retail sector such as:
- Size: UK retail sector is continuously grow because of competitive market but in the current business environmental it force the industry to limit their size (Cant and Hefer, 2012). Basically, increase in the number of business will increase the competition which further affect the productivity as well as profitability.
- Trends in sales: From past two year, retail sales was decreases dramatically because of recession which impact the sales. Some of the retailers reported that they face the 10% low sales in comparison to previous year. It will further impact the growth rate of the UK as well as impact the consumer's confidence specially in the City area where number of retail stores are high.
- Store size and location: In the UK, retail companies such Tesco which expanded their business in terms of size as well as location. In order to get success, management of the company have to change the physical structure through opening new stores in the different location. It is possible when business exaction their operations in the international market. It is only possible when they offer variety of product range along with good quality which satisfy the consumer's needs and desires to satisfy them.
- Above mention structure of retail industry used to categorise the business as per the size, sale, location etc. So organizational have to change their operations accordingly to the latest trend of the market. For example: If customer preference change then business have to identify the current need and offer products & services accordingly. Business also used toadopt latest technology for the comparative advantage which helps in maximising the productivity as well as profitability.
2. Critically assess that how visual merchandising techniques are applied to the product & services of Burj Al Arab
It has been critically analyse that Burj Al Arab followed visual merchandising in order to attract customers and encourage them to use their products & services. Below discussion mentioned that how this techniques applied in the organizations.
- Evaluate overall colour scheme: Under this techniques, architecture match the interior colour with the themes which they wanted to execute in the hotels. Management of Burj Al Arab match the colour of hotel rooms and dining area which make people excited to stay and enjoy the food as well as other services (Hefer and Cant, 2013). Hotel provide the service such as dine at underwater aquarium restaurant so they set the colour accordingly.
- Develop merchandising themes: Under this, management have to consider the product and match with the concept which they hoping to execute. In Burj al Arab, they offer unique services such as dining at underwater aquarium so they set their theme according to the aquarium and visuals related to the fishing and other related things which attract customers to come and visit the place at least once.
- Features sale product creativity: In order to attract customers and encourage them to use Burj Al Arab services and products such as dining, rooms, interior of building etc. So they have to use bright colours for the product display and use light colours for the featured products.For example: in the Burj Al Arab, they provide dining facility where they use light colours for underwater aquarium and dark theme for product display. Here they have to research about other stores, competitors and the customer demand which provide the opportunity to develop new idea which attract consumers.
- Keep fresh perspective: In order to maintain their product or services demand, they have to change product display or according to the seasons & festivals which create excitement in the people to come and visit the hotel and dining of Burj Al Arab. Along with this they have to done various activities to entertain as well as educate them which enhance the learning of customers regarding use of products (Kernsom and Sahachaisaeree, 2012). They also make sure that new display is more attractive or relevant and along with this, provide some benefits or rewards to those customers who regularly visit the hotels for the specific services.
Through following all the above mention techniques, Burj Al Arab can maximise the demand of their facilities or services among the consumers. It helps in attracting people in the large volume which increase the sales and also maximise the potential of retail environment. With the help of visual merchandising, organization get the various benefits but it has disadvantage as well. Such as they required huge staff members to execute their plans, invest more to complete implement the strategy and required to change the product display which is time taken as well as expensive process.
3. Evaluate the role of external merchandising in maximising the number of customers and make recommendations for the improvement
External merchandising refer to the procedure of project which promoted in order to maximise the number of customers which further provide the benefits to maximise sales as well as profit margin. With the help of it, Burj Al Arab maximise their sales and play essential role through attracting large number of customers. Hotel promote the products & services which they offer such as dine at underwater aquarium, gold interior, lust suites etc. These services or products not matched with their competitors because it has remarkable performance. Some of the recommendations discussed below for the improvement of external merchandising.
- Burj Al Arab should follow the attractive design of the product which increase the demand as well as sales of the products & services they offer.
- Organization have to increase their presence in the various public areas in order to attract large number of consumers which helps in maximising the sales as well as revenue (Law, Wong and Yip, 2012).
- Burj Al Arab have to expand their promotional strategies which encourage people to try their services or product once.
With the help of external merchandising, Burj Al Arab able to attract maximum customers which increase the overall demand but they have to regular review the process and done some changes as per the requirement which is beneficial for the organization.
4. Critically examine the psychological and technological merchandising techniques which influence the consumer behaviour
In the visual merchandising, psychological aspect is one of the important component which required to consider if organization wanted to optimise the success of visual merchandising. It further help the business to influence consumer behaviour and understand the required changes which they have to implement. Organizations also use the latest technology to improve the merchandising efficiency (Mehta and Chugan, 2013). Consumers mostly make purchasing decisions by using their emotions. Psychology is science which helps in understanding human mind and their behaviour which affect the demand of products and services. In context of Burj Al Arab, management use the psychological merchandising where they try to understand the consumer behaviour which impact the production as well as profitability of the hotels. Visual marketing is important and at the time seeing advertisement, what customer think and feel about that product or services which is also important to analyse.
Burj Al Arab hotel totally based on latest technology where they offer dining facilities in the unique places such as underwater which force the customers to think about to try once and feel the nature. By using technology will improve the logistics that further helps in reducing the cost or maximise the profit margin. With the help of it, they organizations deliver the low cost or real time availability that helps in identifying the issues which generated because of merchandising (Pegler, 2012). Low cost or timely availability of products & services influence the customer behaviour regarding their purchasing decisions. Organizations used psychological and technological merchandising technique which help in improving operational efficiency as well as effectiveness which is important to attract customers. With the help of visual merchandising, business able to promote their products & services by using effective colours and theme for the display of products which encourage individual to try this service and experience for the best.
5. Discuss the influence of operational design on sales revenue
Effectiveness of operational functions influence the sales as well as revenue of the company. It is very important for the Burj Al Arab to focus on their operational design in order to attract more people which maximise the sales. With the help of effective operational design business able to perform their other hospitality activities which provide various benefits and increase the level or customer satisfaction. Operational designs of the hospitality sector should be well manner which influence the overall productivity as well as profitability (Somoon and Sahachaisaree, 2012). Basically, management of Burj Al Arab hotel have to set various standards and should follow all of then in order to complete their operational activities which further help in achieving business goals & objectives.
Improvement in the operational activities will result the quality work which satisfy the demand of consumers and make them satisfy after using their products & services. It further helps in getting success at huge level. Along with this, one of the key issue of the organization which resolve by using effective operational design such as wastage of resources which reduce the overall cost of the product and services. It further help the management to meet their goals & objective which maximise the production as well as profit margin. At the time of processing their functions, organization make some changes as per the requirement which helps in improving operational performance. Customer satisfaction is the most important aspect and it provide future benefits in monetary terms (Wu and et.al., 2013). Satisfied customers recommend other people to use the products & services of Burj Al Arab which is an word of mouth marketing. In the hotel premises, there are number of technology used regarding power as well as time saving activity. It further helps in helps in providing huge opportunity which enable the organization to influence the sales revenue or operational design.
From the above discussion it has been concluded that, with the help of visual merchandising business able to attract people through changing design or colour of the display . Customers able to identify the uniqueness which generate the interest to use the products as well as services at least once. Along with this, external merchandising play essential role to increase the volume of customers which automatically increases the demand and sales. Organization have to improve their performance with the help of necessary changes in the product display.
- Baek, E. and et.al., 2015. An exploratory study on visual merchandising of an apparel store utilizing 3D technology. Journal of Global Fashion Marketing. 6(1). pp.33-46.
- Cant, M. C. and Hefer, M. Y., 2012. Visual merchandising displays: wasted effort or strategic move? The dilemma faced by apparel retail stores. Journal of Applied Business Research (JABR). 28(6). pp.1489-1496.
- Hefer, Y. and Cant, M. C., 2013. Visual Merchandising Displays Effect On Consumers: A Valuable Asset Or An Unnecessary Burden For Apparel Retailers. International Business & Economics Research Journal (IBER). 12(10). pp.1217-1224.
- Kernsom, T. and Sahachaisaeree, N., 2012. Strategic merchandising and effective composition design of window display: a case of large scale department store in Bangkok. Procedia-Social and Behavioral Sciences. 42. pp.422-428.
- Law, D., Wong, C. and Yip, J., 2012. How does visual merchandising affect consumer affective response? An intimate apparel experience. European Journal of marketing. 46(1/2). pp.112-133.
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